Is it possible for students to get auto loans with no credit history?


ADVERTISING DISCLOSURE: is an independent, advertising-supported web site. receives compensation from most credit card issuers whose offers appear on our site. Compensation from our advertising partners impacts how and where their products appear on our site, including, for example, the order in which they may appear within review lists. has not reviewed all available credit card offers in the marketplace.

Credit Card Applications » Research » Guides » Building Credit History » Is it possible for students to get auto loans with no credit history?

Is it possible for students to get auto loans with no credit history?

The content is accurate at the time of publication and is subject to change.
Getting a car as a student can never be an easy thing to do. You need to take into consideration the fact that you will have to finance yourself for it and make the monthly payments on time. If your dad is helping, it is always a great thing but if not you need to put some thought into investing in it. Firstly, you need to figure out if you need it. If you live far away from college or school, it makes sense to invest in a car. It is also better to do it in a group. This way you can car pool to school and share the costs associated with maintaining it. It is really not possible to bicycle if you live far away from school. And it can get tough during the winter months. A car can save a lot of time, which you can use for your course work or for part time jobs. The main obstacle to owning a car is that you cannot easily get a loan approved as a student. You will either need someone to co-sign on the loan or you will need to settle for exceptionally high interest rates as you have no credit history. Now more often than not, a student will not have a credit history given the fact that he or she would have just opened a bank account after getting out of high school. There are a lot of banks that offer instant approval loans. Lenders are aware that students do not have loads of cash lying around to be able to afford down payments on the car. Now an auto loan is usually easy to get since it is automatically secured. It`s all about reaching the minimum eligibility criteria that the lender sets for the borrower. There are also several low interest rate schemes. For students, they might also look into college records like grades to make an appraisal about the credit worthiness of the individual. There will also be flexible repayment schemes based on the type of lender that you decide to go with. Now down payments are something that would be a huge burden if you do not have anybody to help you out with it. The best way to get a very low interest rate loan would be to put in a substantial down payment. But if you cannot do this, most lenders will accept even ten percent of the cars value as down payment. The co-signer is not compulsory. It all boils down to which lender you decide to go with. Choosing the right lender will go a long way in reducing your burden. Go online and look for quotes. You can fill in your details and get instant quotes and get a feel of the sort of investment you are going to have to make before meeting the agents in person. Remember, buying a car is mostly the first big financial step that you are taking. Use it as a means to gain experience with the least possible financial impact.

Disclaimer: This editorial content is not provided or commissioned by the credit card issuer(s). Opinions expressed here are the author's alone, not those of the credit card issuer(s), and have not been reviewed, approved or otherwise endorsed by the credit card issuer(s). Reasonable efforts are made to present accurate information, however all information is presented without warranty. Consult a card's issuing bank for the terms & conditions.
All rates and fees, and other terms and conditions of the products mentioned in this article/post are actual as of the last update date but are subject to change. See the current products' Terms & Conditions on the issuing banks' websites.
Add to Favorites:
Get the latest news, articles and expert advice delivered to your inbox. It's FREE.

Related Research:

Autumn 2018: Best Rewards Credit Cards for Thanksgiving Shopping

Autumn 2018: Best Rewards Credit Cards for Thanksgiving Shopping

Posted: November 8, 2018

Thanksgiving is coming, and whether you are hosting a meal or coming as a guest, your spendings are going to accumulate faster than you can notice. A holiday feast is a costly matter – each year Americans spend around $50 on a Thanksgiving ... Continue reading
The Best Credit Card for Earning Cash: Discover it® Cash Back

The Best Credit Card for Earning Cash: Discover it® Cash Back

Posted: November 2, 2018

You’ll have hundreds of dollars in your pocket in no time because you’ll earn money back on every purchase you make with this card. There are no restrictions on the amount of cash back you can get, and Discover even matches every penny you ... Continue reading
Top 5 Cards for Travel from Our Partners: Autumn 2018 – Expert’s Choice

Top 5 Cards for Travel from Our Partners: Autumn 2018 – Expert’s Choice

Posted: October 10, 2018

Nights are drawing out, the wind is colder every day and you already feel the lightest breath of winter on your face - autumn is here. Holidays are over, kids are back to school and all you are left with are hefty holiday bills that you ... Continue reading
You've successfully subscribed!

Please specify the following:All these fields are optional

Your Credit History
Themes you are interested in:

By providing this information you help us make our news letters more useful and informative. Thank you!